ChartSmarter Friday Game Plan 4/8/16

Markets never saw the light of day Thursday and the it was the Nasdaq bleeding out the worst with a loss of 1.5%, but barely held onto its 200 day SMA. The S&P 500 was lower by 1.2% and all of the major S&P sectors lost ground (with the exception of the utilities up fractionally) and the banks were slashed by 1.8%, the worst performer. For the week heading into Friday the Nasdaq is lower by 1.35% and the S&P 500 by 1.5%, almost the identical opposite of the TLT’s movement for the week. The ETF is higher by 1.7% and is looking almost certainly to have its 4th consecutive weekly gain and perhaps next week will look to breakout above the cup with handle pivot point of 135.35. Looking on the corporate debt side the LQD is quietly higher and is looking at a potential fifth consecutive weekly gain. Its dividend yield of 3.6% is markedly better that the TLT’s 2.5% coupon. Looking at other groups that provide some payout which investors have been searching for the XLU sports a dividend yield of 3.3% and it is looking at a loss this week (today completed its first 4 session losing streak since last October), and a meaningful one at that down 2.4% heading into Friday. Interestingly it hit a 49.88 cup base trigger last Friday precisely and backed off. Lets not kid ourselves as market participants have been searching for yield throughout this huge rally although I have tried to focus on the Nasdaq attempting to outperform. The XLP is higher 9 of the last 11 weeks and it pays a dividend yield of 2.9%. The XRT slumped almost 3% Thursday and undercut its 200 day SMA in the biggest daily volume of the year. Some leaders in the retail sector are flashing some warnings signs. Below is one of the generals PLCE and how it was presented in this Tuesdays Game Plan. The trigger was never hit but its action is noteworthy. It looks like an ugly bearish engulfing weekly candle is in store from all time highs down almost 7% this week.